Chart Patterns
Shakeout
Also called: shakeouts, shook, shook out, shake out, shakeout candle
When a stock dips below a prior support level or the bottom of a base, triggering everyone's stops, and then snaps right back. Shakeouts are designed to shake out weak holders before a real move and the low of a shakeout candle becomes one of the strongest levels you can find because it just proved it can absorb the selling.
On the Chart
In Context
“TLN quiet after earnings, big lower wick gives a similar shakeout feel as GEV with a double bottom”
Death by a Thousand Cuts·Digest
“Perfect flat base, major shakeout candle back into the base, I traded it a few times but kept getting stopped.”
Nothing's Changed Yet·Digest
“When there's a big lower wick, especially on a shakeout candle, the low of that wick is a level I always come back to because someone was willing to step in there hard enough to create it.”
“They reclaim whatever level they shook out through fast and the chart looks back to what it did before.”
“GEV and ASML weekly closes both constructive, shakeout confirmed”
Shaken Out But Not Moving On·Digest